Data memory and electronics manufacturer SanDisk Corp. (Nasdaq: SNDK) has wrapped up the acquisition of Fusion-io Inc., a provider of storage to Facebook Inc. (Nasdaq: FB) and Apple Inc. (Nasdaq: AAPL).
The Milipitas, California-based company announced the $1.1 billion transaction for the hardware and software company in early June. Fusion-io, based in Salt Lake City, Utah, is expected to help SanDisk broaden the company's electronic computer storage services.
Fusion-io, which made an initial public offering in 2011, tapped Apple cofounder Steve Wozniak in 2008 to serve as the company's chief scientist. Since then, however, the company struggled as Facebook and Apple, which accounted for about 50 percent of revenues in 2012, began buying less flash storage.
Company cofounders David Flynn and Rick White eventually left Fusion-io. CFO Dennis Wolf and chief sales offer James Dawson followed.
Shane Robison, the current CEO, was previously chief strategy officer at Hewlett-Packard Co. (NYSE: HPQ), considered Fusion-io's third-biggest customer. Robison left HP in 2011, shortly after HP removed Leo Apotheker and hired Meg Whitman due to the controversial $10 billion acquisition of British software company Autonomy Corp.
The Fusion-io transaction also comes at a time when dealmaking in the tech sector is accelerating. Established software companies are trying to navigate the shift to cloud computing and fend off challenges from new competitors.
In June, Oracle Corp. (NYSE: ORCL) agreed to buy Micros Systems Inc. for $5.3 billion and, before that, International Business Machines Corp. (NYSE: IBM) bought SoftLayer Technologies Inc., a cloud-computing storage provider that will help it compete with Amazon.com Inc. (Nasdaq: AMZN).